Apple shares plummet on news of Jobs' medical leave

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Filling Jobs' shoes
Who should Apple choose as its interim leader?

COO Tim Cook
CFO Peter Oppenheimer
SVP Phil Schiller
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Updated at 2:33 p.m. with updated after hours trading information.

Apple shares plunged 10.8 percent a share in after-hours trading Wednesday, after the company announced CEO Steve Jobs would take a medical leave until June.

Jobs said he would take a medical leave after learning his situation was more complex than initially believed.

Apple's shares fell as low as $76.11 a share in after-hours trading, down 10.8 percent from its close of $85.33 a share at the end of the regular trading session.

Wall Street analyst Gene Munster with Piper Jaffray said on CNBC that he still considers Apple a buying opportunity.

"No doubt that Apple is losing the greatest pitchman on earth, but people still want to buy Apple products," Munster said.

He added that the stock is grossly undervalued and presents a buying opportunity.

"Apple investors need to look at the big picture. They need to look at the new products, the balance sheet...this is a storm that will pass," said Munster, who noted Apple has a deep bench of talent.

The analyst pointed to Tim Cook, who will oversee Apple's daily operations during Jobs' absence.

"Tim Cook is a pretty unemotional person, but his ability to run a company is second to none," Munster said. "He is very capable of running the operations of the company."

Munster also noted that while investors may be "frustrated" with how Apple has handled the disclosures regarding Jobs' health, they should not be dissuaded from investing in the company.

[CrashPad63]

Could not of happened to a more deserving company. Nothing against folks working there but the leader is nothing but an illusionist. No real innovations or quality products just smoke and mirrors! <br />Shame on you Steve.

[rgonzalezvh]

get a life man !

[ppgreat]

No real innovations or quality products?? Compared to whom? Microsoft? Acer? Gateway? Dell? HP?<br /><br />I guess a few dozen tech reviews and double digit growth year-over-year escaped your notice too?

[Hep Cat]

Good thing no one listens to you....the talent at Apple is in the employees - not Steve.

[AppleSuxLeo]

He brain washed millions into paying three times as much as the Chinese components are worth as well as suckering in imbeciles into buying devices without memory card slots or user-replaceable batteries. <br /><br />[Edited to remove offensive material.]

[mgarc1125]

CrashPad63 = biggest ****** in the universe<br /><br />Hope Steve gets better!<br /><br />Back on topic Apple stock is definitely too cheap, definitely time to buy.

[Everlovin G]

Your mother must be so proud of you, CrashPad63.<br /><br />Desejo você lesões cancerosas.

[sandonet]

I want to get in on this too. What do you call the iPhone? Other companies may have had pieces of the same technology but nobody ever put it all together as well as the iPhone. The device is one of the best purchases, not just the best tech purchases, I've ever made. <br /><br />And we're talking about a man's life here. Your accusation that Jobs wasn't innovative--even if true--would hardly be justification for wishing ill health on someone. I'm sorry but on this one you crashed and burned, CrashPad.

[rgonzalezvh]

people tend to be so dumb...Jobs may be sick and take a well deserved medical leave...why drop a stock the is and will continue to be true down to the penny ? you got to really be a moron...how many companies in the market right now can back up with a pile of cash their name and reputation...what other company can give you real products (GREAT PRODUCTS) ? none...do you think Jobds does it alone...PLLEEAAASSSEEE LoL...<br /><br />This company will continue to make great products with or without Mr. Jobs !, this is possible the best time to buy its stock..price is so low I can't imaging where will it fly once the markets rebound in the near future...<br /><br />Then again... playing stock exchange has basically the same odds as winning jackpots in vegas..so much insider trading and stupid information out there that no matter what you can guess..it is just that a wild guess...<br /><br />Get well soon Steve...You've done a great great job !

[make_or_break]

People get out on bad news because they believe...no...they KNOW other people will sell as well. Sure enough, there's less demand and the price goes down. After hours trading bears this out; when the face of the company is down, especially one who is as tied to the hip of Apple's fortunes as Jobs is, honestly...what did you really expect?<br /><br />Like it or not, that's the way of a short-term position of investing; why stick around if you know that the stock is going to drop? You can always get back in later at the cheaper price.

[Chapmaniac]

The stock market is so fickle!

[AppleSuxLeo]

Apple shares are dropping like a big turd.

[joerickx]

Steve jobs and Apple have brought this on themselves. He for being disingenuous about his health problems and Apple for the uncommunicative, stonewalling response to a whole host of problems that Apple's customer's have experienced. I hope he get's his health back and returns to lead Apple with a fresh outlook on how to address difficult issues.

[Penguinisto]

Damn... that really sucks.<br /><br />As for the stock price? Let the idiot day-traders eat their losses and sell off at a lower price... once the financials come in next go 'round, those same morons will be begging to re-buy the same stock at a much higher price, as usual.

[lordmorgul]

Perfect time to buy...

[make_or_break]

No...not yet.

[ecotopian--2008]

Steve Jobs is a genius who has changed the world again &#38; again. What have you done lately? You are pathetic.

[gggg sssss]

Even gates had a succession plan. Apple is a one man company. Bye Bye AAPL Lenovo will pick up the pieces.

[murbo]

you mean that crazy dude was a succession plan?! developers developers developers. i loooove thiiis companyyyy...<br />right

[Penguinisto]

Yeah - we've seen Gates' succession plan... turns out to be the guy who throws chairs, brought us the Vista debacle, and in general has overseen the biggest drop in Windows' marketshare so far since he took over.<br /><br />Some successor... but at least if Ballmer leaves for medical (or any) reasons, MSFT stock will likely go up on the news. :/

[Vegaman_Dan]

Penguinisto: <br /> <br />And yet Microsoft continues to grow and make billions. <br /> <br />Your comments have been rather lackluster of late and uninspired. Quite unlike your normal witty satire and cutting remarks. I hope you aren't feeling under the weather. Perhaps you may want to follow Mr. Jobs' path and take a leave of absence? I think you could benefit from it.

[AppleSuxLeo]

We always snicker when we go by the empty Mac section at FRY`s. I tried their OSX , and it was gimmicky at best. I never gave Mr Popeil a dime of my money.

[Vegaman_Dan]

It should be pointed out that this 10.8% drop was after hours... which is *after* the stock had already dropped more than 5% while the market was open. That means the total drop was even higher. <br /> <br />This morning it's recovered some of that, but there is a lot of mixed feelings amongst investors now. One analyst at RBC changed the stock rating to one of the lowest in years: <br /> <br />"RBC Capital Markets cut its rating on Apple's stock to "underperform" from "sector perform." RBC also cut its price target on the stock back to $70 US from $125 US." <br /> <br />SOURCE: http://www.cbc.ca/money/story/2009/01/15/applestock.html <br /> <br />But don't panic, it's back up to only a 5% loss overall from the start of day yesterday to its current value. This will no doubt vary a bit more until investors see what Tim Cook takes as his first action at the reigns.